Is the epidemic terrible? It’s scary, but not scary, because we medical workers have done our best to fight the virus, and it’s only a matter of time before the epidemic ends. What we textile people are most worried about right now is the loss of customers. Because of the epidemic, the entire domestic textile industry has been suspended for more than 20 days, and some areas have not even resumed production. Even if work has started in many areas, the operating rate is still not optimistic.
Long-term production suspension and low operating rate after the start of construction have caused delays in the delivery of many customer orders. As we all know, the popularity and timeliness of clothing are very important. Both of these points require the timely and accurate placement of clothing on the shelves. If there is a long delay from the fabric side, it will inevitably affect the time to market of clothing and also affect clothing sales. .
Delay in delivery
Severe impact on foreign trade
Domestic customers may be able to understand the delay in delivery. After all, the epidemic is raging and the demand for clothing Being suppressed, delaying the launch will have little impact on sales. However, the impact on foreign trade customers is much greater. On the one hand, the distance is long and the production cycle is extended. On the other hand, most areas abroad are not greatly affected by the epidemic. The demand for clothing is still there, and with the arrival of spring and summer, the demand for clothing will only become stronger. .
Take Bangladesh as an example. As the second largest clothing exporter in the world after my country, 46% of the raw materials in their garment weaving industry come from my country. Traders who engage in textile foreign trade have more or less in their hands. There are only a few Bangladeshi customers. However, affected by the epidemic, the quantity and value of goods imported from China dropped by 20.87% and 8.29% respectively from January 1 to February 21 this year. The textile industry’s production capacity was limited and the impact was serious.
Unlike domestic customers, foreign customers still have a way out when it is difficult to guarantee orders. Southeast Asia and other regions already have relatively complete textile industries, and foreign trade customers can transfer orders to these countries. This is of course what domestic textile traders are most worried about. Once foreign trade customers adapt to new suppliers, the possibility of placing domestic orders again is low. So is it likely that foreign trade customers will transfer orders?
Price concessions
It is difficult for customers to transfer
Accustomed to Chinese textile fabrics, foreign trade It’s really not that easy for customers to transfer orders.
Bangladesh’s garment industry has been greatly affected by the pneumonia epidemic because it is highly dependent on my country. But they are also trying to import substitutes from other alternative channels, while local raw material and other related material processing companies have taken the opportunity to increase product prices. This also makes them have no confidence to completely separate from China. As long as the Chinese textile industry resumes production, it will first return to China.
According to an employee of a textile foreign trade company in Shanghai, they resumed work on February 10. However, since various textile factories were not producing normally, they only developed and sent samples every day, and many of the development samples were Sent to Southeast Asia and other countries. They thought that this year there would be a large loss of textile orders and transfer to foreign countries. However, as the domestic textile industry resumes work, a large number of orders have returned, and it is now busier than before.
The main reason for this situation is that the current domestic fabric price advantage is still difficult to achieve in Southeast Asia and other countries. According to reports, the polyester knitted fabrics they often make are 50 cents cheaper per kilogram than abroad, which is about RMB 3.5 per kilogram. We must know that the current normal selling price of polyester knitted fabrics is 20-30 yuan/kg, and 3.5 yuan/kg is equivalent to no profit. This price is incomparably attractive to many foreign clothing companies.
In the short term, it will be very difficult for foreign trade customers to “escape” from China. The first is the insurmountable price barrier, but this possibility is not impossible. exists and is even growing year by year.
The foreign trade companies mentioned above have foreign trade suppliers all over the country. One of them has opened a dyeing factory in Bangladesh, and a textile market similar to China is gradually forming in Bangladesh. Of course, these are ultimately due to low prices. of labor force. In the long run, the possibility of transferring foreign trade orders to other countries will increase, but for now, there is no need to worry too much. Instead, we must complete all types of foreign trade orders placed in a timely and accurate manner, so that foreign trade customers can see the prices of our textile fabrics. advantages beyond. </p
